When do startups or businesses fail
There is a growing trend of people becoming their own boss and starting online business or even a brick and mortar store. While there is nothing better to be your own master many of these ventures often fail miserably and disappear without a trace.
What is it that motivates people to start their own business in the first place and what are the factors that lead to the untimely death of these businesses. Let us find out.
- Starting a business for wrong reasons: Currently, the economic scenario is conducive for entrepreneurship with several countries offering tax benefits for startups and small-scale businesses. Those riddled with unemployment and lack of a steady job often try their luck at the business while others take up part-time jobs and invest in a trading robot like Crypto CFD Then there are those who turn entrepreneurs because nobody can fire them!
All the above-stated reasons are the wrong reasons to start any business. Lack of passion in your work will never bring success because you will not be motivated to grow or persist with all you have to achieve your goal. At the sign of the first setback or failure, you will give up. A true business person never gives up.
- The lure of fast money: Many people live with the misconception that being an entrepreneur is the route to quick money. They forget that only passion and commitment can bring in success and money in this field. Lack of interest is a disaster waiting to happen.
- Dependence on business lineage: Your profession is not determined by your genes. Your ancestors and forefathers might be business people but it is perfectly normal for you do not have an iota of business sense in you. By convincing yourself that your genes will see you thought you cannot hope to succeed in any business. The only advantage you will have if you belong to a business family is that you will have the guidance and support of your kin and even the necessary infrastructure.
- Having a herd mentality: A common mistake most entrepreneurs do is to invest in a field that is currently popular even though they have zero knowledge about the industry. To be successful in your business you must be well versed in the industry and only then will you be able to give something new to the customer, something unique that nobody else has offered so far.